Money market
Simply define and illustrate the Money market?
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Money market is the portion of financial market and one of significant concept of Finance since finance is flow of fund and money market gives system for flowing of funds and commercial papers. In easy words, money market is that market in which brief word commercial papers are purchased and sold and short term loan are provided and taken. Mainly dealers of money market are the banks and financial institutions who require fund in very short term and they can’t take this fund from capital market since in capital market, they can just receive long term fund with big amount of loan and share capital.
Assume that your firm is operating in the segmented capital market. State some of the actions that you would recommend to diminish the negative effects?
Money fund: Money fund is as well main instrument of the money market. This fund that can be employed for fulfilling the requirements of banks to repay the customers.
Significant costs associated with the disposal of asset. Accounting for asset retirement obligations requires estimating the cost and discounting estimate. The present value added to the asset's depreciable base and a liability is recorded for the obligation. Every year, interest expense is added
What is your recommendation concerning investment with/in the Value Trust? a. Why do you recommend? b. Why don’t you recommend?
to what extent does risk and term structure affects interest rates of financial instruments.
Define the term Assets in Accounting?
Would exchange rate changes always raise the risk of the foreign investment? Explain some of the condition under which exchange rate changes can actually decrease the risk of foreign investment.
Assume there is non-tradable asset along with the perfect positive correlation with a portfolio T of the tradable assets. How will non-tradable asset be priced?
Evaluate the given statement: “Firm may decrease its currency exposure by diversifying across the different business lines”.
Specify intuition behind NPV capital budgeting framework?
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